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An independent system operator (ISO) (also called a or Regional Transmission Organization (RTO)) is a profit-neutral organization that coordinates, controls, and monitors the operation of the electrical power system, either within a single state or across multiple states.
The role of these organizations is significant in making the Smart Grid real. ISOs and RTOs will use the smart distribution system as another resource for managing a secure and most economic transmission system. “Lessons learned” from their experiences in building processes and technologies, etc., will be directly applicable to efforts in grid transformation, both short-term and long-term.